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9 MARCH 1999 CAPITAL TAXES GIFTS WITH RESERVATION As expected following its recent defeat in the House of Lords (Ingram V IRC), the Government has moved to counter 'lease carve out schemes' by bringing them within the gift with reservation rules. The new provisions will apply to gifts of interests in land on or after 9 March 1999 where: · there is some interest, right or arrangement which enables or entitles the donor to occupy the land to a significant degree or enjoy a significant right in relation to the land without paying ftill consideration; · the gift is made within seven years after the interest, right or arrangement concerned is granted, acquired or entered into. DUTIES ALCOHOLIC DRINKS AND TOBACCO The duty on most alcoholic drinks has been frozen this year. The tax on a packet of 20 cigarettes will increase by 17.5p from 9 March 1999.
VEHICLE EXCISE DUTY (VED) AND ROAD FUEL DUTY A reduced VED rate of £100 for cars with engines up to 11OOcc will be introduced from 1 June1999. VED for all private and light goods vehicles will be increased by £5 to £155 from 10 March 1999. A series of measures to help the haulage industry have been announced including a freeze in most lorry VED rates. The tax on unleaded petrol will go up by 3.79p a liter from 9 March 1999. STAMP DUTY Stamp Duty on transfers of property (excluding shares) of more than £250,000 will be increased. The new rates will be 2.5% where the price is more than £250,000 but not over £500,000 and 3.5% where the price exceeds £500,000. The new rates apply to transfers on or after 16 March 1999, except for transfers made in pursuance of a contract made on or before 9 March 1999.
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